Peoplebox

Employee Engagement and Performance: Are they Correlated?

Sagrika Mehta

Sagrika Mehta

Employee Engagement and Performance

When employees feel heard and important at their workplace, it is obvious for them to keep themselves productively engaged with their work. This in turn helps to push up their performance bar.

According to a survey organizations that have implemented employee engagement activities on regular basis have 40 percent more organizational productivity than in companies where employee engagement is not practiced.

Hence, taking steps to create an engaged workforce is the first step towards garnering improved performance from their end. 

How a highly engaged workforce is an asset

  • Higher Retention

Employees, who have a genuine liking towards their job, are definite to show higher levels of focus, commitment, and engagement. Since they are satisfied with their work profile, the chances of them sticking around is higher.

  • Sense of Belongingness

It always helps when the employer and employees come together and decide to work as a family. When employees feel that their organization is taking care of them and valuing them, they are sure to experience a sense of belongingness. This in turn levels up their job engagement.

  • Regularity

The equation here is simple. When an employee enjoys the work he is expected to perform each day, he will always look forward to heading to his workplace. These engaged employees are usually the regular ones.

  • Loyalty

Employees, who are engaged at work, are more likely to maintain their loyalties to the organization that they are working. Such employees do not hesitate to go that extra mile in the interest of their employers.

  • Improved Employee Health – Physical & Mental

Employees, who are satisfied with their job, have a natural tendency of being engaged and performing better. This in turn reflects in the form of improved physical and mental health of the employee.

  • Happy & Content Employees

Employees, who love their job, are likely to show higher levels of engagement, productivity, and performance. It is no surprise for such employees to be happy and contented with their work life.

A study conducted by the Addison group suggests that various factors influence employee engagement, which in turn influences their work performance. 55% influence is of the job role, 50% of salary, and 39% of the immediate boss.

The increased importance of Employee Engagement and its impact on Performance with the WFH module/Post-Pandemic Situation:

Disengaged employees make 60% more mistakes as compared to the ones that are engaged. This leads to a steady drop in their performance levels.

A survey released by Microsoft speaks about the importance of Employee Engagement in the post-pandemic scenario. Despite being away from their work desks, if employees can stay engaged, improved work performance can be guaranteed.

Hence, organizations are coming forward to develop strategies and roll out methodologies that help to create a workforce, which has a better attention span, knows what they are doing, does not hesitate to look for guidance, are learners, and most importantly feels engaged in their work. A direct outcome of this is improved employee productivity and performance, which also contributes to enhanced organizational performance.

Howard Schultz, former CEO and Chairman of Starbucks Coffee has quoted that “To expect employees to be self-motivated, engaged and perform to the satisfaction of the clients, the organization needs to first stay true to the expectations of employees and help them to stay engaged and perform well.”.

This holds particularly true in the post-pandemic era, wherein employees are expected to work away from their office. In the words of Doug Conant, founder, and CEO of ConantLeadership, “To win in the marketplace, you must first win in your workplace”. Indeed, very true.

Employee Engagement and Improved Employee Performance are the stepping-stones to an array of other parameters that directly or indirectly affect the functioning of an organization.

Performance appraisals are also crucial in backing employee engagement and ultimately influencing employee performance. 

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Employee Engagement and Performance Management

In most organizations, there are at least 50% of employees, who believe that performance management is being carried out accurately and on fair terms.

Organizations that boast of higher performance management experience employee engagement that is 14% higher than organizations, which overlook this utility.

Likewise, the performance level of employees working in organizations with a bent towards the performance management utility is 24% higher when compared to its counterparts.

As the business environment is evolving and its complexity is witnessing an upward trend, it has become indispensable for organizations to take performance management seriously and in turn contribute towards steady employee engagement and performance.

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How employee engagement affects performance of employees

A study by Gallup had stated that only 33% of employees feel engaged in their jobs. 52% have gone ahead and declared that they simply show up. Then there is the remaining 17% that claims to be actively disengaged.

Looking at these figures, one can safely state that it is not only about creating an engaged workforce. This is not a one-time activity. It is equally important for employees to be consistently engaged in their work. 

This is another vital area, wherein the organization concerned needs to take active measures to ensure that the level of employee engagement and performance either remains steady or improves further.

Final Thoughts:

On a concluding note, it can be stated that employee engagement and performance are linked to one another. This is irrespective of the scale and nature of the organization that the employee is working. 

Rising awareness regarding employee engagement and performance is pushing organizations to tweak their policies and create a conducive environment that helps employees to be fully involved in their work and ultimately outperform themselves in every quarter.

After all, Jim Goodnight, CEO and co-founder of SAS Institute had rightly said, “Treat employees like they make a difference and they will.”

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